National Republican., 1887-03-22
EXISTING CREDIT SYSTEM.
An Advantage for the Rich and q Dis.
advantage for the Poor.


EDITOR NATIONAL RErUBLcAN The
best bankrupt law that Congress could
pass would be that Of abollshing the law
which guarantees the credit. Why should
our present parents raise their children to.
be honest, as honesty has no valuep The
most honest man is not trusted for loaf
Of bread on his honesty, and opposite the
more bankrupts q man makes, the better
capital crime and serves a
term of twenty years I'm the peni.
tentiary, and then opens large
business, that his crime would not influence
his credit at all. The richer man is the
cheaper credit he can get. One can borrow
one-half million dollars on good security
much cheaper than you can borrow $4,000
called solid business men who are already
q risk to their creditors must pay u
great deal more for their credits, and
the poorer they arc the more they must
pay In proportion. The creditor has IN
most cases the advantage over the debtor,
for he charges so very high for his credit
that he very seldom loses. Let us say, for
example, that every one has twice rs much
credit as capital. One who has So, 900 capt
tai can get $4,000 credit; another, with
100000 capital, can get 5000, 900 credit aud
that is for longer term and cheaper credit.
Now, how can poor man compete with q
rich one.
II business commences to flourish little
then everything goes head over heels; the
manufacturers overproduce, the merchants
overbuy, &C., as nobody (so they say risks
anything; everything goes on credls and
every one can become bankrupt II neces
sary. Then there is q stagnation and we
have crisis. The several crises which We
have had brought great destruction to the
| poorer classes. Many formerly wealthy
are sinking down to paupers. Millions
Of workingmen, have no work, and
| consequently nothing to eat. These several
crises also created the tramps Of this
country, a species unknown fifty years ago;
and why, because fifty years ago we did moi
| have the present credit system. A crisis Il
| a time when the rich swallow up the les
rich, q time Of settlement where the pool
pays for all.
Now let us look as to the increase oi
| prices on goods caused by the credit. The
| manufacturer charges certain amount tc
the wholesale dealer for his credit, tht
wholesale dealer charges the retailer still
| larger amount for his credit, and the poo
man las the majority are), who has the mis-.
fortune to be, compelled to ask credit from
the retailer, has to pay twice as much a.
the real value OF the goods. Every person
has their mode Of living as II their credi
1
is worth 5000, and has Sl0,0Ot
credit, his mode OF living is as II he really Il
worth $4,000, and so 1t goes on into the
millions, and II one has a million dollars
credit he lives as millionaire, and he ha
the right to do so, for as long as his blsi
ness nourishes 1t is to his interest to remair
in business and make money; hut IL hi
business does not go, he can also max
| money, by making NEUTRALITY-SUSPICIOUS. grea
disadvantage Of the present credit system
and such class Of people are found In ever!
large city, and those | would call cheat
ers or swindlers. They operate in sucl
n way that they care not for profit, lik
honest Dealers but try and get as quick Al
possible, the lightest possible credit, ant
fail; they sell at such small profit, that 1
is impossible for an honest dealer to CON
pete with, aud when they fail they rui
very often many honest dealers. Tn
dealers, who are to be pitied the most, ar
those who believed the teachings o
their parents that honesty lasts tn
longest, and when these fail the
pay every cent they have, AM
become poor, and not only do they becom
poor and are not pitied, but they ar
laughed at and called fools. Our public
gambling system which is called dealing Il
futures (Which has brought great calamity
and destruction to many families) could nc
exist II our credit was not lawfully guar
ahteed.
The most of our present values are cred
values, and II We had no lawful guarantee
credit system our real value would be ab)u
one.third Of our present credit value. W
produce at the present time about fou
times more agricultural products In Frt
| portion to our present population thaul u
did fifty years ago, and why do our py,pt& =,
cost three or four times as much pYf
then. The reason is because our fjrcset
values are credit values. IL the law whc
guarantees the credit would be abolishe
we would have another crisis, which woul
: be to regulate the real value, but this cris
would not be destructive one; 1t would
one of healing, and everything would go @
In settled manner.
The present credit system is monarchica
as 1t is for the interest of every monarch
cal government to make laws for the ben
lit of the privileged closes: They, wal
that O few be enormously rich and Il
great majority poor. for the rich are 81
supporters Of the throne, but In republ
, every law which is not for the ben
! fit of the great majority is unrepub)
| and unjust, and as the lawful guarantee
| credit system Is o law made for the benei
ofa,few wealthy, and TO the;disbenedt OF Il
great masses, II is unjust and ought to
abolished. II all OF us would deal vii
, cash money, we could manufacture ever
; thing cheaper than other countries whe
the credit system exists.
II this law would be abolished we woul
still have credit on small scale, but cred
; would only be given to honest peopl
and raise their children to be homes
Honesty would become again value ar
it would be new birth Of our republic.
. L. s. ,JIJSTU